Diploma Plc Acquires Abacus ALS Pty Ltd
Diploma PLC, the international group of businesses supplying specialised technical products and services, is pleased to announce the acquisition of 100% of Abacus ALS Pty Ltd ("Abacus").
Abacus is a long-established supplier of clinical diagnostics instrumentation and consumables to the Pathology and Life Sciences sectors. Abacus has particular strengths in Immunology and Biochemistry testing, supplying to both the public and private laboratories in Australia and New Zealand. Abacus also supplies to research and educational institutions, blood donor services and specialist centres including IVF and veterinary laboratories.
The business employs 44 staff across its principal locations in Brisbane, Australia and Auckland, New Zealand and the existing management team will remain with the business.
Abacus's audited revenues in the year ended 30 June 2016 were ca. £13.6m (A$22.6m) and the audited profit before tax was ca. £1.5m (A$2.5m), after charging losses of discontinued businesses and other non-recurring expenses. After adjusting for these exceptional items, underlying operating profit was ca. £1.8m (A$3m). Audited gross assets at 30 June 2016 were £5.6m (A$9.2m).
The initial cash consideration, including net debt acquired but before acquisition costs, is £13.6m (A$22.5m) which will be met from the Group's existing cash resources and revolving bank credit facility. This may be subject to minor adjustment based on the net assets at completion. Further deferred consideration up to a maximum of £2.1m (A$3.5m) may be payable in 2017 depending on the operating profit out-turn of the business in the year ending 30 June 2017.
The Board expects this acquisition to be immediately earnings enhancing to the Group and will be reported as part of the Life Sciences activities.
Bruce Thompson, Chief Executive of Diploma PLC said:
"This acquisition fits well with Diploma's strategy of building a larger, broader based Healthcare business with core strengths in Clinical Diagnostics and Surgical Products. Abacus has a good fit with our existing Healthcare businesses in Australia and New Zealand and opens up further growth opportunities."